S02 FEAG 4 2020 Agenda_FEAG Master Template 29/07/2020 11:03 Page 6
AGENDA
FAR EASTERN AGRICULTURE • Issue Four 2020
FOOD OUTLOOK
and rapeseed oils also appreciated. International palm oil prices rose sharply in June on account of both recovering global import demand, following the easing of COVID-19 related lockdowns in numerous countries, and concerns over possible production setbacks amid prolonged migrant labour shortages. The FAO Dairy Price Index averaged 98.2 points in June, up four per cent from May. June marked the first increase in the value of the Index after four months of
Poly Glass and HLA form JV for freshwater aquaculture in Malaysia
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Vietnam plans to be fully ASFfree by 2025 Image credit: Adobe Stock
POLY GLASS FIBRE (M) Bhd, Malaysia’s fibre glass wool manufacturer, has announced to form a 50-50 joint-venture (JV) company with Hong Len Aquatic Sdn Bhd (HLA) to set up a freshwater aquaculture The aim is to boost freshwater aquaculhatchery in Tanjung Malim, ture sector in the country. Perak. As reported in The Edge Markets, Poly Glass will provide the land via its subsidiary Golden Approach Sdn Bhd (GASB) and HLA will equip the required aquaculture hatchery technology, operation model and market distribution network.
consecutive declines, even though the Index remained 4.6 per cent below its level in the corresponding month of 2019. Price quotations for all the dairy products represented in the Index rose, but not to the pre-pandemic levels. The FAO Meat Price Index averaged 95.2 points in June, down 0.6 per cent from May and six per cent below its June 2019 level. International price quotations for poultry and bovine meats fell, largely due to increased export availabilities in major producing regions, despite high import orders from China and the Middle East. By contrast, pig meat prices made a small recovery, mostly driven by a timid recovery in Europe on expectation of the easing of COVID-19 market restrictions. The FAO Sugar Price Index averaged 75 points in June, up 10.6 per cent from May. The surge in crude oil prices provided strong support to sugar markets; it encouraged Brazil’s sugar mills to use more sugarcane supplies to produce ethanol instead of sugar, thereby affecting sugar export availabilities. Furthermore, recent reports of bottlenecks in Brazilian ports due to the measures imposed to contain the spread of the coronavirus helped in pushing up the value of the Sugar Price Index.
VIETNAM AIMS TO free its more than 90 per cent communes from the African Swine Fever (ASF) by 2022 and the entire nation by 2025, as per the targets set in the nationwide African Swine Fever prevention plan 2020-2025. The country will further strengthen testing The plan has been capacity. approved by the deputy prime minister Trinh Dinh Dung. It further targets to have 500 safe pig breeding facilities and 50 safe livestock chains to meet domestic demand and boost export, reported SGGP Online. Image credit: Adobe Stock
THE FAO FOOD Price Index (FFPI) averaged 93.2 points in June 2020, 2.4 per cent higher than in May, representing the first month-on-month increase since the beginning of the year. Amid market uncertainties posed by COVID-19, the prices of vegetable oils, sugar and dairy products rebounded to multi-month highs following sharp declines registered in May, while in cereals and meat markets, most prices remained under downward pressure. The FAO Cereal Price Index averaged 96.9 points in June, down 0.6 per cent from May and 1.9 per cent below the corresponding month last year. Downward pressure on wheat prices intensified in June, in part due to new harvests in the northern hemisphere, but also due to improved production prospects in a number of major exporting countries, in particular in the Black Sea region. Barley and sorghum export prices also fell in June, reflecting generally good production prospects amid timid global import demand. The FAO Vegetable Oil Price Index averaged 86.6 points in June, gaining 11.3 per cent after declining for four consecutive months. The rebound of the Index mainly reflects higher palm oil values, while quotations of soy, sunflower
